Credit lines are more geared towards getting cash extended for up to ten years, similar to a credit card. Not many banks offer these however others allow their clients to use the credit line facility. By contrast, refinancing releases cash on a home in order to increase its equity value.

One needs to look at the rates offered by various lenders to decide which option is better. While some lenders offer an interest rate of 5.74% on their home equity loans, refinance lenders offer one percentage point less to help homeowners decrease the high interest rates on a pending mortgage loan.

The purpose of the loans is to change the terms of a mortgage loan by turning the loan into a lower payment plan. The homeowner may use the loan to either consolidate his debts, or alternatively to replace an old loan.

When looking for a loan, be careful of online brokers who offer to give you a loan without you having to undergo a credit check. This is because lender legislation requires them to check the borrower's credit background.

Lastly, credit lines, also known as "Home Equity Lines of Credit" come with a prime rate of interest. However, despite this the homeowner may choose when he wishes to use the credit as well as when he wishes to repay the debt during an interval. As the above discussion shows there are many options to choose from if you consider applying for a home equity loan.